## Tesla vs. Rivian: Diverging Paths in the EV Market, Future Fund ETF Offers Insights
The electric vehicle (EV) market is witnessing a fascinating dynamic as industry giants Tesla and Rivian navigate their distinct trajectories. This contrasting approach is highlighted by their performance within Gary Black’s Future Fund Active ETF (FFND), providing a window into the evolving landscape of the EV sector.
The Future Fund ETF currently holds a significant position in Tesla, with 954 shares valued at $275,257, representing 4.20% of the portfolio. This substantial investment reflects Tesla’s strong performance, evidenced by its stock rising 2.90% to $296.91 on Thursday, marking a 33.63% gain over the past year. Year-to-date, Tesla’s shares have surged 19.52%, solidifying its position as the undisputed leader in the EV market.
In contrast, Rivian faces more challenging conditions. Despite a 3.35% rise to $10.04 on Thursday, Rivian’s stock has experienced a decline of 52.44% year-to-date and 42.39% over the past year. Despite these setbacks, Future Fund Managing Partner Gary Black remains optimistic about Rivian’s resilience, noting investor confidence following the company’s maintained positive fourth-quarter gross margin forecast, even amidst supply chain challenges.
Rivian reaffirmed its 2024 production target of 47,000-49,000 vehicles, although it anticipates full-year EBITDA losses between $2.83 billion and $2.88 billion. The company’s Chief Software Officer, Wassym Bensaid, underscored Rivian’s unique strategy, emphasizing a focus on incremental safety and convenience improvements rather than pursuing full self-driving technology or robotaxis, a path taken by competitor Tesla.
CEO RJ Scaringe remains confident about Rivian’s growth prospects, particularly emphasizing the R2 platform’s potential as a key driver of future expansion. This optimism comes despite recent misses on revenue and EPS estimates.
The Future Fund ETF’s holdings in Tesla and Rivian offer a valuable perspective on the evolving dynamics of the EV market. While Tesla continues to dominate with its established presence and ambitious technology, Rivian is pursuing a distinct path, prioritizing incremental improvements and focusing on its core product offerings. This contrasting approach signifies the diverse strategies within the EV sector, shaping its future trajectory and offering investors opportunities for strategic allocation.
